Inhibiting and Success Factor for Chemical Leasing

MasterRecently, the growing concern on environmental safety changes the paradigm of production from product to service. One of the most dramatic changes in new paradigm has been applied in the chemical industry, which is called chemical leasing. Traditionally, chemical industry supplies a substance for a specific service. However, chemical leasing provides service instead of the ownership of chemicals so that the ownership of substance still remains in producer. The service which can be provided by the substance is provided in chemical leasing. Hence, the producer does its best to get more efficient use of chemicals as well as quality, environmental, and economic benefits. By this characteristics, chemical leasing is regarded as a proven innovative instrument for the sustainable management of chemicals. In spite of these benefits, the adoption of chemical leasing in the industry is still in its primitive stage. Some companies in EU have tried chemical leasing as pioneering case study to prove its feasibility. However, there have less efforts to apply it into Korean industry. To comply with chemical regulation and achieve sustainable production, chemical leasing can be the most effective and innovative business model. Hence, it is required to estimate the possibility to apply chemical leasing into Korean chemical industry and to provide strategic plan to be successfully implemented. To do this, this research work tries to define chemical leasing, to reveal hinderance, and to find success factor through case study. The found result will be used for Korean chemical industry to adopt new innovative business model with less risk